Macroeconomic Forecast Botswana

May 2008 | Macroeconomic Forecasts

BMI View: We have carried out an extensive review of our data and forecasts and while there are some variations in the paths of specific indicators, the underlying picture remains extremely positive. Real GDP growth will settle at around the 6% level over our forecast horizon, driven principally by a strong impetus from investment in major projects in mining, energy and transport. There are few concerns about the fiscal and external accounts, and the pula looks stable against the greenback, although the central bank may allow some modicum of movement against the rand in both directions. Inflation remains the major macroeconomic policy issue, but after a peak this year this year, the trend should turn mildly favourable.

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